APO Demonstration Companies Project Demonstrates Business Value of Green Productivity

Cambodia's manufacturing sector has expanded rapidly in recent years, supported by competitive labor costs, trade agreements, and investment-friendly policies (Medina, 2025). However, this growth has also intensified the challenge of balancing productivity enhancement with environmental sustainability, particularly as Cambodia advances its 2021 Circular Economy Strategy and Action Plan.

To address this challenge, the APO Secretariat and the National Productivity Centre of Cambodia implemented a Development of Demonstration Companies (DMP) project titled Green Productivity Application through Environmental Management Systems in the Manufacturing Sector from November 2024 to December 2025. Four Cambodian manufacturing companies, Cambodian Chemical Supply Co., Ltd.; Ly Ly Food Industry Co., Ltd.; K&K Pipe (Cambodia) Co., Ltd.; and Kirirom Food Production (K.F.P) Co., Ltd., joined the project, guided by a resource person from Cambodia and another from Japan.

The project delivered impactful results with the successful integration of an environmental management system compliant with ISO 14001:2015 into the companies' existing management systems. Through initiatives to reduce environmental impacts and optimize resources across production processes, environmental awareness was strengthened and an improvement culture based on plan, do, check, act (PDCA) principles was embedded. In addition, applying material flow cost accounting based on ISO 14051:2011 identified approximately USD234,000 in total potential and realized cost savings, demonstrating that environmental improvement can also generate tangible business value. Project outcomes were disseminated through a hybrid conference held in Phnom Penh, Cambodia, on 17 October 2025, attracting approximately 120 participants from Cambodia and other APO members. A publication is being developed to share insights and practical case studies, supporting wider GP adoption across the Asia-Pacific region.